Reportedly, 10% of the total assets of the National Social Security Fund will be invested in market-oriented PE funds. This plan has been approved by relevant authorities recently.

According to the official statistics of the National Council for Social Security Fund, the market value for the total assets of the National Social Security Fund reached RMB516.2B by the year-end of 2007. Over RMB50B (about 10% of the RMB516.2B) will be invested into market-oriented PEs.

It is disclosed that two market-oriented PE funds CDH Investments and Hony Capital will launch RMB funds respectively, each of which will secure RMB1B of the National Social Security Fund.

Zhongmin Wang, Vice Director of the National Council for Social Security Fund, said that the Social Security Fund will conduct the investment in the PE market via two channels: to conduct equity investment in unlisted companies, and to stake in established and to-be-established funds.